Monitoring Agency Report for the quarter ended March 31, 2025
HARSHA · price
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CARE Ratings, the monitoring agency for Harsha Engineers' Rs. 455 crore IPO, has confirmed no deviation from the stated objects of the issue. Of the Rs. 429.40 crore net proceeds, Rs. 419.67 crore has been utilised, leaving Rs. 9.73 crore unutilised and parked in fixed deposits. The borrowing repayment (Rs. 270 crore), infrastructure repairs (Rs. 7.12 crore), and general corporate purposes (Rs. 74.33 crore) are fully utilised, while machinery purchase (Rs. 77.95 crore) has Rs. 9.73 crore still pending deployment. The Board has extended the machinery capex deployment timeline up to FY26. General corporate purpose funds were primarily used for raw material vendor payments (Rs. 71.22 crore) and electricity payments (Rs. 3.11 crore).
The report shows largely disciplined use of IPO funds with no material deviation, which is a positive signal for investors. However, Rs. 9.73 crore remains unutilised after over two years, and the monitoring agency flagged it could not trace a specific fixed deposit earmarked against the unutilised IPO proceeds, which may warrant a closer look.